LPG buyers in six dists to pay market price from Feb 28

Subsidy to be credited to Aadhaar-linked bank accounts

LPG buyers in six dists to pay market price from Feb 28

Domestic consumers of LPG in six districts in the State, including Bangalore Urban, will have to pay the market price for the LPG refill cylinder from February 28, 2014.

The Union petroleum ministry has decided to implement Aadhaar-based Direct Benefit Transfer (DBT) system for LPG refill supply from February-end in Bangalore Urban, Haveri, Koppal, Bidar, Davangere and Bijapur districts. The DBT system has already become compulsory in Tumkur district, and Mysore and Dharwad will follow suit from October 1 this year.

The system has been implemented on a pilot basis in Tumkur, Mysore and Dharwad. About 60 per cent of LPG consumers in Tumkur have come under the DBT. There are about 90 lakh LPG domestic consumers across the State.

Under the DBT, LPG consumers will have to pay the market price for the LPG refill cylinder.
The subsidy amount on every domestic refill cylinder will be directly credited to the consumers’ Aadhaar-enabled bank accounts. Those who fail to submit their Aadhaar numbers and Aadhaar-enabled bank accounts to the local LPG distributor within the stipulated time (February 28, 2014) will not get the cash subsidy on the LPG refill, official sources said.

Currently, oil marketing companies – IOC, HPC and BPC – have been supplying domestic LPG refills at almost half the actual price. The Union government is bearing the cost of subsidy.

The DBT is aimed at preventing diversion of the highly subsidised LPG cylinders to the black market.

The petroleum ministry has announced that it will give effect to DBT from December 1, 2013, in these districts. But it has given a grace period till February 28, 2014, to make the system mandatory.

Slow pace of enrolment

However, enrolment under Aadhaar is slow in these districts. Besides, there has been a delay in issuing Aadhaar numbers to those who have enrolled themselves.

There is a lot of confusion among the people as to whom to approach to enquire about the delay in getting Aadhaar numbers.

This is because two different agencies are doing the work: While the Centre for e-governance of the State government is doing the enrolment, the Unique Identity Authority of India of the Centre is issuing the Aadhaar numbers. Aadhaar enrolment in Bangalore is about 58 per cent.

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